European Update. 2nd July 2015

Transcription

1 European Update Place your chosen image here. The four corners must just cover the arrow tips. For covers, the three pictures should be the same size and in a straight line. 2nd July 2015

2 1. General Update Philip Hobbins - Technical Code Development Manager Office Tel: , Mobile: philip.hobbins@nationalgrid.com 2

3 Code Status Update Code Current Status Implementation date Congestion Management (CMP) Implemented 1 st October 2013 Capacity Allocation Mechanism (CAM) Gas Balancing (BAL) Approved for implementation at relevant EU IPs 1 st November 2015 Approved for implementation 26 th March st Oct 2015 Interoperability & Data Exchange (INT) Code entered EU Law on 30 th April 2015 now Commission Regulation (EU) No 703/2015 Some deliverables planned for 1 st October 2015, others by 1 st May 2016 Tariffs Under development Estimated earliest mid January Applicable from October 2017 Incremental Capacity Under development. Applicable from March 2017

4 Go Live Go Live Compliance Go Live Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Gas Codes Timeline Status of Development of European Gas Network Codes Future dates are subject to change Dates shown in italics are best approximations based on current understanding. It has been necessary to 'round' some dates for the benefits of the diagram KEY Activities undertaken by ACER Activities undertaken by ENTSOG Activities undertaken by European Commission Network Code / Guideline TODAY Congestion Management Principles (CMP) Capacity Allocation Mechanisms (CAM) Balancing Interoperability & Data Exchange Tariffs ACER Review Commitology (duration unknown) Incremental ACER Review Commitology (duration unknown)

5 Road Map Phase 1a From Oct 2013 CMP CAM Balancing Interoperability Tariffs Other Surrender process (UNC Mod 0449) 2015 Phase 1b From Oct 2014 Phase 2a 1 st Oct 2015 LTUIOLI & enhanced provision of data to ENTSOG platform Gas Day Allocations reform, Ancillary agreements, Interconnection agreements Other EU legislation REMIT Phase 2b on or before 1 st Nov 2015 CAM Cross-border nominations etc Phase 3 May 2016 Phase 4 Late 2017 Incremental capacity auctions at IPs (TBC) TSO-shipper data exchange, common units & gas quality reporting Implementation of tariff arrangements at IPs (2017) Additional transparency requirements 2018

6 2. EU Code Updates Matthew Hatch Commercial Development Manager Office Tel: , Mobile Matthew.Hatch@nationalgrid.com

7 Modifications 501V,501AV,501BV,501CV Impact Assessment closed 17th June 2015 Modifications with Ofgem awaiting approval decision National Grid (NG) require a decision before 21 st July 2015 Bacton Reallocation Process Proformas Currently being developed for all Mod proposals For information purposes only, the proformas are to be published shortly on the JO website When one of the 501 Mods is approved the final version of the proformas will be issued, as appropriate, via NG s Operational Team Contact details are currently being obtained from relevant Shippers. 7

8 Bacton Reallocation Process Timeline The implementation date is the trigger date for the process to commence A general note will be issued prior to the invite being issued. *but no earlier than 7 BDs for 501CV 8

9 Modification at Interconnector Points (IP)s Following industry development of CAM (Mod 500) a request has been made by adjacent TSOs to reduce the eligible minimum quantity to 1 kwh, to better meet the requirements of the Irish market EID (2.1.4 (h)) states that capacity bids and surrender offers entered on PRISMA are not permitted below a minimum quantity of 100,000kWh/d National Grid intends to raise a Modification to reduce the minimum eligible quantity to 1 at IPs (1kWh/d at Moffat and 1kWh/h at Bacton) This would be effective from Gas Day 1st Nov 15 to coincide with CAM implementation We currently do not think that there are any system impacts to Gemini or PRISMA.

10 EU Tidy Up Modification 493/500 A Tidy Up Mod would affect EID legal text sections A, B & C The aim is to amend any areas of the legal text that would benefit from clarification Ofgem identified 2 such areas in their decision letter for 493/500 and invited NG to clarify such aspects The Legal Text updates can be broadly categorised as: Admin (typos & numbering) Clarifications / Corrections 10

11 Next Steps 2 nd July introduce at Tx WG 16 th July Panel NG request Self Governance Modification Subject to Panel, walkthrough each change proposed at the Tx WG on Aug 6th A single WG may be sufficient (depending on feedback from WG) Ideally, then modification will be in place before commencement of EU processes wef 1 st Oct. 11

12 EU Tariffs Code Update Colin Hamilton EU Code Development Manager Office Tel: , Mobile colin.j.hamilton@nationalgrid.com

13 EU Tariffs Code Timeline 24 th June: The Explanation of Decisions Document (ExD) and the TAR NC version of 24 Jun. to be sent to TAR WG and ACER/EC for comment 30th June: Deadline for comments from the EC/ACER and the TAR WG on the TAR NC version of 24 Jun and the ExD. 1 st July: ENTSOG Tariff WG agree final revised draft

14 EU Tariffs Code Timeline 16 th July: ENTSOG Board consider code for approval Mid- to end July: written procedure for GA approval End-July: ACER formally receives revised draft Aim for code to be ready for Informal Member State meeting 17 th 18 th September

15 Updated TAR NC Timeline for 2015 EC/Member States Madrid Forum April Aim to deliver code to EC by end of August Madrid Forum Oct ACER Informal Member State meeting 19 March Informal Member State meeting 16 June Informal MS meeting September 1 st Comitology meeting December ENTSOG PHASE 1: ACER Review ACER Reasoned Opinion 26 March PHASE 2: ENTSOG amendments High level meeting 7 May Tri-lateral meeting 21 May GA 25/06 ACER Board of Reg 16/07 GA written procedur e ACER Board of Reg 17/09 PHASE 3: Comitology GA 21/10 BOA 15/01 BOA 26/02 GA 12/03 BOA 31/03 GA BOA 22/04 30/04 BOA 21/05 BOA 11/06 BOA 16/07 BOA 10/09 BOA 01/10 TAR WG 23/03 Aim to deliver code to July Board 20/01 03/02 17/02 16 & 17/03 7/04 12/05 2/06 15/06 1/07 15

16 Transmission & non-transmission services

17 Transmission & non-transmission services transmission services means the regulated services that are provided by the transmission system operator within the entry-exit system for the purpose of transmission non-transmission services means the regulated services other than transmission services that are provided by the transmission system operator provided that the following conditions are not met: (a) the costs of such services are caused by the cost drivers of both capacity and distance; and (b) the costs of such services are related to the regulated asset base for the provision of transmission services

18 Cost Allocation Test ACER requirement for test to be based on physical cost drivers of capacity and distance This would not account for any Transmission Service revenues from any commodity based CRRC ENTSOG to check with ACER whether the exhaustive list of capacity, distance and flows would meet their concerns;

19 Option to offer Fixed Tariffs Fixed price tariffs still prohibited for unsold existing capacity in a revenue cap regime Concern raised amongst TSOs about complexity where: Incremental sold at fixed price but, Existing sold at floating price in same auction Revised text shall allow both incremental and existing capacity to be sold at a fixed price in a single auction.

20 Storage Concern raised over removal of article on storage Unclear if code would allow a different treatment for tariffs at storage points Articles on consultation and NRA decision of tariff methodology now states: where relevant, the manner in which transmission tariffs for the storage facilities are set Does this preserve the ability to apply discounts to storage sites?

21 Informal Member State Meeting Meeting held on 19 th June Discussion on tariff Network Code and Incremental proposal Stakeholders provided their view of the compromises Code changes are an improvement but don t go far enough Feedback from Members States Concern with non-binding opinion from ACER Next Informal Member State meeting in September

22 EU Incremental Amendment Update Colin Hamilton EU Code Development Manager Office Tel: , Mobile colin.j.hamilton@nationalgrid.com

23 Incremental Amendment ACER still developing revised text ENTSOG anticipates receipt of text by end June Public consultation may be held mid- to end-july May wait for ENTSOG approval of TAR NC before holding consultation on incremental amendment Amendments to CAM may include Incremental amendment Auction calendar technical changes to articles (auction algorithms & bundling)

24 3. UNC Modification Plans Philip Hobbins - Technical Code Development Office Tel: , Mobile: philip.hobbins@nationalgrid.com

25 Phase 2 UNC Modifications Potential Timescales EU Network Code Area of change Status Next Steps UNC Consultation Gas Balancing (BAL) Information Provision (489) Ofgem approved Implementation Complete Capacity Allocation Mechanism (CAM) " Nomination Process at IPs (493) Ofgem Approved Implementation Complete " SMP Buy & Sell (494) Ofgem approved Implementation Complete Gas Day change (461) Ofgem approved Implementation Complete " CAM / CMP Compliant Capacity Auctions (500) Ofgem approved Implementation Complete " Bacton split (501V / 501AV / 501BV / 501CV) With Ofgem Impact Assessment Complete Interoperability & Data Exchange (INT) Reform of Allocations (0510) Final Workgroup Report to Panel Workgroup Meeting 29 June Re-Consultation expected late July " Harmonisation of Reference Conditions (0519) Final Workgroup Report to Panel Ofgem decision Complete " Enabling EU Compliant Interconnection Agreements (0525) In development Consultation / FMR to Panel Closes 9 th July 2015

26 Planning for Phase II Implementation - Update Philip Hobbins - Technical Code Development Manager Office Tel: , Mobile: philip.hobbins@nationalgrid.com

27 Background Last month we provided an overview of our current thinking with regards to EU Phase II planning, i.e. how we aim to ensure that the operability of the GB regime is maintained That overview highlighted how full phase II implementation will require a number of items including systems, processes and contracts, to come together successfully over the coming months Good progress has been made since the last WG meeting, with a number of previously discussed contingencies now unlikely to be required Expectation is that this will continue to be the case as we move towards go live 27

28 Brief updates since last Workgroup Mod 525 now out for consultation: schedule on track Confirmed code drops can be accommodated during normal Gemini weekly maintenance window Stakeholder engagement planning underway to support stakeholder readiness Interconnection Agreement (IA) discussions progressing well, consultations scheduled for July Alignment reached on IT testing schedules with adjacent TSOs Mods 493 & 500 have been approved Not all sites have yet agreed to provide 5-5 gas day data. Repeat telemetry mod being prepared Mod 525 amended to accommodate individual process start dates within IA 28

29 High Level Contingency Planning Status Contracts Contingency not envisaged to be necessary Processes Key new processes of nominations matching and OBA are close to finalisation at the time of writing IT systems Pre-1 st October: NG has built in contingency for codedrop dates; manual processes if adjacent TSO is not ready are being considered, detail being worked up Post 1 st October: Manual contingency successfully tested for non-receipt of matching files. If Gemini or Adjacent 29 TSO system becomes unavailable still work in progress

30 Summary & way forward NG will continue to assess and refine contingency arrangements To the best of our knowledge, TSOs remain on track for systems delivery and are aligned in terms of delivery milestones To prepare for go live, NG developing external engagement strategy / user trials Focus on ensuring shippers of all sizes are appropriately informed A fuller update can be provided at August Workgroup when system integration testing should be substantially complete EU changes will be covered again in our Gas Customer Seminar in September 2015 We would appreciate stakeholders sharing their contingency plans with us in case these need to be actioned 30

31 Future Topics Philip Hobbins - Technical Code Development Manager Office Tel: , Mobile: philip.hobbins@nationalgrid.com

32 Future Topics Topic Area Provisional Date Tariffs Code Monthly updates whilst progressing through comitology Incremental Code Monthly updates whilst progressing through comitology EU Phase 2 Systems Update August Workgroup

33 Your feedback is important to us You can always contact us to ask questions, provide feedback or tell us how we are doing, particularly in relation the topics discussed today: Phil Hobbins (Technical Code Development Manager) Office Tel: , Mobile: Chris Logue (EU Policy Manager) Office Tel: , Mobile Or You can also provide feedback online if you wish: 33